Collapse of Faith

Charles Conant 1899: ”The two fundamental elements of credit are confidence and time. The word itself is derived from the Latin credere, to believe, and the term used on the European continent for the circulation of banks of issue is the fiduciary circulation, the former begin derived from the Latin fiducia (trust) related to fides (faith).

100 billion there, 200 billion here and 700 billion dollars there in faith-money can hopefully restore some faith, but do not forget the second most important aspect of credit is time. It is possibly we only have reached the end of the beginning of the credit crunch?? For every day faith is fading around the globe. If faith at some point over the next few years should collapse completely it could go from ugly to extremely ugly. Let's not hope so, lets have faith in the system ;-)

The only “good” thing is after faith in a system has collapsed and we have gone through some great stress we will always end up with faith in something new, the big question is in what? In another system with the illusion of low risk, where risk is pushed under the carpet for a while, or a system where risk is taken serious, something we not should hide, but something we should understand and respect and yes to some degree tame.

Well first we have to try to save the current system with its current tools, the more faith is fading the more faith-money need to be pumped into the system.

To trust a system based on faith is good. Not to trust such a system, is far better.